Notice2024-20861
2,4-Dichlorophenoxyacetic Acid From India: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 13, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of 2,4-Dichlorophenoxyacetic Acid (2,4-D) from India. The period of investigation is January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 89 Issue 178 (Friday, September 13, 2024)</title>
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[Federal Register Volume 89, Number 178 (Friday, September 13, 2024)]
[Notices]
[Pages 74908-74910]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-20861]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-923]
2,4-Dichlorophenoxyacetic Acid From India: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final
Determination With Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of 2,4-Dichlorophenoxyacetic Acid (2,4-D) from
India. The period of investigation is January 1, 2023, through December
31, 2023. Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable September 13, 2024.
FOR FURTHER INFORMATION CONTACT: Harrison Tanchuck or George McMahon,
AD/CVD Operations, Office VI, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-7421 or (202)
482-1167, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this countervailing duty (CVD)
investigation on April 30, 2024.\1\ On June 10, 2024, Commerce
postponed the preliminary determination of this investigation until
September 3, 2024.\2\ On July 22, 2024, Commerce tolled certain
deadlines in this administrative proceeding by seven days.\3\ The
deadline for the preliminary determination is now September 9, 2024.
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\1\ See 2,4-Dichlorophenoxyacetic Acid from the People's
Republic of China and India: Initiation of Countervailing Duty
Investigations, 89 FR 34205 (April 30, 2024) (Initiation Notice).
\2\ See 2,4-Dichlorophenoxyacetic Acid from the People's
Republic of China and India: Postponement of Preliminary
Determinations in the Countervailing Duty Investigations, 89 FR
48891 (June 10, 2024).
\3\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 22, 2024.
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary
[[Page 74909]]
Decision Memorandum.\4\ A list of topics discussed in the Preliminary
Decision Memorandum is included as Appendix II to this notice. The
Preliminary Decision Memorandum is a public document and is on file
electronically via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In
addition, a complete version of the Preliminary Decision Memorandum can
be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Countervailing Duty Investigation
of 2,4-Dichlorophenoxyacetic Acid from India,'' dated concurrently
with, and hereby adopted by, this notice (Preliminary Decision
Memorandum).
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Scope of the Investigation
The product covered by this investigation is 2,4-D from India. For
a complete description of the scope of this investigation, see Appendix
I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\5\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\6\ Commerce issued a
supplemental questionnaire on June 4, 2024, requesting clarification
regarding two of the Harmonized Tariff Schedule of the United States
(HTSUS) subheadings under which the subject merchandise may also be
classified.\7\ On June 11, 2024, Corteva Agriscience LLC (the
petitioner) confirmed that the HTSUS subheadings petitioner intended to
include were as follows: 3808.93.0500 and 3808.93.1500.\8\ As a result,
Commerce is preliminarily modifying the scope language. The scope as
described in Appendix I incorporates the modified language.
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\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\6\ See Initiation Notice, 89 FR at 34206.
\7\ See Commerce's Letter, ``Scope Supplemental Questions,''
dated June 4, 2024.
\8\ See Petitioner's Letter, ``Response to Scope Supplemental
Questions,'' dated June 11, 2024.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\9\ For a full description of the methodology underlying our
preliminary determination, see the Preliminary Decision Memorandum.
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\9\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied, in part,
on facts available and, because it finds that the Government of India
did not act to the best of its ability to respond to Commerce's
requests for information, it drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\10\
For further information, see the ``Use of Facts Otherwise Available and
Adverse Inferences'' section in the Preliminary Decision Memorandum.
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\10\ See sections 776(a) and (b) of the Act.
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Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final CVD determination in this
investigation with the final determination in the companion less-than-
fair-value (LTFV) investigation of 2,4-D from India based on a request
made by the petitioner.\11\ Consequently, the final CVD determination
will be issued on the same date as the final LTFV determination, which
is currently scheduled to be issued no later than January 21, 2025,
unless postponed.\12\
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\11\ See Petitioner's Letter, ``Petitioner's Request for
Alignment of Final Determinations with Deadline in Concurrent CVD
Investigations,'' dated July 24, 2024.
\12\ See 2,4-Dichlorophenoxyacetic Acid from India and the
People's Republic of China: Postponement of Preliminary
Determinations in the Less-Than-Fair-Value Investigations, 89 FR
67420 (August 20, 2024).
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce calculated individual estimated
countervailable subsidy rates for Atul Limited and Meghmani Organics
Limited that are not zero, de minimis, or based entirely on facts
otherwise available. Commerce calculated the all-others rate using a
weighted average of the individual estimated subsidy rates calculated
for the examined respondents using each company's publicly ranged
values for the merchandise under consideration.\13\
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\13\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale values for the merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate closest to (A) as
the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and Decision Memorandum
at Comment 1. As complete publicly ranged sales data were available,
Commerce based the all-others rate on the publicly ranged sales data
of the mandatory respondents. For a complete analysis of the data,
see Memorandum ``Preliminary Determination Calculation of Subsidy
Rate for Non-Selected Companies Under Review,'' dated concurrently
with this notice.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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Atul Limited............................................ 5.29
Meghmani Organics Limited \14\.......................... 3.28
All Others.............................................. 4.13
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Suspension of Liquidation
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\14\ As discussed in the Preliminary Decision Memorandum,
Commerce preliminarily finds the following companies to be cross
owned with Meghmani Organics Limited: Epigral Limited; and Matangi
Industries LLP.
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In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation entered, or withdrawn from warehouse,
for consumption on or after the date of publication of this notice in
the Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce
will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
[[Page 74910]]
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. A timeline for the submission of case briefs and
written comments will be notified to interested parties at a later
date. Rebuttal briefs, limited to issues raised in the case briefs, may
be filed not later than five days after the date for filing case
briefs.\15\ Interested parties who submit case briefs or rebuttal
briefs in this proceeding must submit: (1) a table of contents listing
each issue; and (2) a table of authorities.\16\
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\15\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\16\ See 19 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their brief that should be limited to five pages
total, including footnotes. In this investigation, we instead request
that interested parties provide at the beginning of their briefs a
public executive summary for each issue raised in their briefs.\17\
Further, we request that interested parties limit their public
executive summary of each issue to no more than 450 words, not
including citations. We intend to use the public executive summaries as
the basis of the comment summaries included in the issues and decision
memorandum that will accompany the final determination in this
investigation. We request that interested parties include footnotes for
relevant citations in the executive summary of each issue. Note that
Commerce has amended certain of its requirements pertaining to the
service of documents in 19 CFR 351.303(f).\18\
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\17\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\18\ See APO and Service Final Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce via ACCESS
within 30 days after the date of publication of this notice. Requests
should contain the party's name, address, and telephone number, the
number of participants and whether any participant is a foreign
national, and a list of the issues to be discussed. Oral presentations
at the hearing will be limited to issues raised in the briefs. If a
request for a hearing is made, parties will be notified of the time and
date for the hearing.\19\ Parties should confirm by telephone the date,
time, and location of the hearing two days before the scheduled date.
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\19\ See 19 CFR 351.310(d).
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U.S. International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its determination. If
the final determination is affirmative, the ITC will determine before
the later of 120 days after the date of this preliminary determination
or 45 days after the final determination whether imports of 2, 4-D from
India are materially injuring, or threaten material injury to, the U.S.
industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: September 9, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is 2,4-
dichlorophenoxyacetic acid (2,4-D) and its derivative products,
including salt and ester forms of 2,4-D. 2,4-D has the Chemical
Abstracts Service (CAS) registry number of 94-75-7 and the chemical
formula C8H6 Cl2O3.
Salt and ester forms of 2,4-D include 2,4-D sodium salt (CAS
2702-72-9), 2,4-D diethanolamine salt (CAS 5742-19-8), 2,4-D
dimethyl amine salt (CAS 2008-39-1), 2,4-D isopropylamine salt (CAS
5742-17-6), 2,4-D tri-isopropanolamine salt (CAS 3234180-3), 2,4-D
choline salt (CAS 1048373-72-3), 2,4-D butoxyethyl ester (CAS 1929-
733), 2,4-D 2-ethylhexylester (CAS 1928-43-4), and 2,4-D
isopropylester (CAS 94-11-1). All 2,4-D, as well as the salt and
ester forms of 2,4-D, is covered by the scope irrespective of
purity, particle size, or physical form.
The conversion of a 2,4-D salt or ester from 2,4-D acid, or the
formulation of nonsubject merchandise with the subject 2,4-D, its
salts, and its esters in the country of manufacture or in a third
country does not remove the subject 2,4-D, its salts, or its esters
from the scope. For any such formulations, only the 2,4-D, 2,4-D
salt, and 2,4-D ester components of the mixture is covered by the
scope of the investigation. Formulations of 2,4-D are products that
are registered for end-use applications with the Environmental
Protection Agency and contain a dispersion agent.
The country of origin of any 2,4-D derivative salt or ester is
determined by the country in which the underlying 2,4-D acid is
produced. 2,4-D, its salts, and its esters are classified under
Harmonized Tariff Schedule of the United States (HTSUS) subheading
2918.99.2010. Subject merchandise, including the abovementioned
formulations, may also be classified under HTSUS subheadings
2922.12.0001, 2921.11.0000, 2921.19.6195, 2922.19.9690,
3808.93.0500, and 3808.93.1500. The HTSUS subheadings and CAS
registry numbers are provided for convenience and customs purposes.
The written description of the scope of the investigation is
dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Diversification of India's Economy
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Subsidies Valuation
VII. Benchmarks and Interest Rates
VIII. Analysis of Programs
IX. Recommendation
[FR Doc. 2024-20861 Filed 9-12-24; 8:45 am]
BILLING CODE 3510-DS-P
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